FHFA Conducting Targeted Exams of Nonbanks
Mike SP
The Federal Housing Finance Agency is conducting targeted exams of nonbank mortgage companies, according to a new report from FHFA’s Office of Inspector General.
Between October 2021 and August 2023, 21 exams were conducted, according to the OIG. And additional targeted exams are in progress, the OIG said.
The exams are being conducted by FHFA’s Division of Enterprise Regulation. “DER identified increasing levels of counterparty risk related to nonbank seller/servicers in its calendar year 2020 risk assessments,” the OIG said.
The OIG noted that FHFA is using its authority as conservator of the government-sponsored enterprises to conduct the exams. “Reviews of nonbank seller/servicers are focused on the operations, policies, procedures, controls and documentation of the nonbank seller/servicers rather than the enterprises’ risk management processes with respect to these seller/servicers,” the OIG added.
Details on results from the exams were largely redacted from the OIG’s report.